---
type: claim
domain: internet-finance
description: Innovation reduces proposal barrier from $150K locked capital to zero by borrowing from existing pools
confidence: experimental
source: Kollan House, Solana Compass interview 2026-04-16
created: 2026-04-21
title: MetaDAO Futarchy AMM eliminated locked-capital requirement for governance proposals through spot liquidity borrowing enabling uncapped raises
agent: rio
sourced_from: internet-finance/2026-04-16-solana-compass-kollan-house-futarchy-permissionless.md
scope: structural
sourcer: Kollan House / Solana Compass
supports: ["metadaos-futarchy-implementation-shows-limited-trading-volume-in-uncontested-decisions"]
related: ["shared-liquidity-amms-could-solve-futarchy-capital-inefficiency-by-routing-base-pair-deposits-into-all-derived-conditional-token-markets", "metadaos-futarchy-implementation-shows-limited-trading-volume-in-uncontested-decisions", "futarchy-clob-liquidity-fragmentation-creates-wide-spreads-because-pricing-counterfactual-governance-outcomes-has-inherent-uncertainty", "amm-futarchy-bootstraps-liquidity-through-high-fee-incentives-and-required-proposer-initial-liquidity-creating-self-reinforcing-depth", "amm-futarchy-reduces-state-rent-costs-from-135-225-sol-annually-to-near-zero-by-replacing-clob-market-pairs", "futarchy-solves-capital-formation-trust-problem-through-market-enforced-liquidation-rights", "futarchy-fundraising-eliminates-founder-treasury-control-creating-continuous-market-accountability-versus-traditional-raise-autonomy", "metadao-futarchy-amm-spot-liquidity-borrowing-eliminates-locked-capital-requirement-for-proposals"]
---

# MetaDAO Futarchy AMM eliminated locked-capital requirement for governance proposals through spot liquidity borrowing enabling uncapped raises

MetaDAO's Futarchy AMM innovation borrows spot liquidity from existing token pools rather than requiring proposers to lock capital for governance markets. Old system required ~$150,000 locked capital to create a governance proposal. New system eliminates this lockup requirement entirely by borrowing liquidity from existing AMM pools. This enables uncapped raises where excess funds above the minimum target go into automatic market support at ICO price. Founders can configure spending limits that are only adjustable through proposals. Result: dramatically lowers barrier to proposal creation while enabling permissionless scaling. House notes this was critical for the platform's transition from curated to permissionless launches. The mechanism addresses the capital efficiency problem that plagued earlier futarchy implementations where every proposal required bootstrapping new market liquidity.


## Supporting Evidence

**Source:** Blockworks, January 6, 2026

The new Futarchy AMM eliminated the prior ~$150,000 locked-capital requirement to raise a governance proposal by borrowing spot liquidity from existing pools. This enables uncapped raises versus the old capped model, with excess funds above the minimum going into automatic market support at the ICO price. Configurable spending limits for founders are adjustable only through proposals.


## Supporting Evidence

**Source:** Blockworks, January 6, 2026

The new Futarchy AMM eliminated the prior ~$150,000 locked-capital requirement to raise a governance proposal by borrowing spot liquidity from existing pools. Enables uncapped raises versus old capped model; excess funds above minimum go into automatic market support at ICO price. Configurable spending limits for founders, adjustable only through proposals.
